Gypsum industry news

US: Harrison Gypsum LLC, a producer of gypsum and plaster products, has acquired the Gravel Company LLC, a producer of aggregate materials for the construction industry. Both companies are based in the US. The acquisition will allow Harrison Gypsum to expand its operations in the Eagle Ford region in South Texas.

UK: Cuddy Recycling Ltd, a start up company that is supported by the Welsh Government, plans to invest Euro1.49m to create the first wood, wallboard and gypsum recycling centre in South Wales. It will create 22 jobs.

Backed by Euro285,000 from the Welsh Economic Growth Fund, the purpose-built centre will be based on the former Wern Works site in Briton Ferry, Neath Port Talbot which, subject to planning, will be partially demolished and redeveloped. The new centre will process and recycle demolition aggregate from construction and demolition projects across Wales, as well as waste timber and wallboard from the construction industry and civil amenity sites.

It aims to provide a green alternative to landfill with waste timber used for animal bedding, panel board manufacture and biomass fuel, with the option of introducing a garden mulch product at a later date.

Aggregates will be sorted for reuse in construction companies. Wallboard will, where possible, be taken back to wallboard manufacture, or the gypsum recycled as a soil conditioner for agricultural purposes. There is also potential for use as a cement additive.

"This project supports two of our key economic sectors, providing a specific service for the construction sector while the new business will operate in the energy and environment industry, one of the fastest growing sectors in the Welsh economy with waste management - the largest sub sector," said economy minister Edwina Hart. "Companies working in this area are not only making a significant contribution in terms of job creation and financial impact, but by reducing waste to landfill they are helping us achieve recycling targets and ensure that we create a sustainable environment for future generations. The proposed new centre will provide an important facility to deal with construction and demolition waste and I am pleased to support this new start up through the Economic Growth Fund."

US: Louisville's Charah Inc uses by-product gypsum from a local coal plant to make a fertiliser, SUL4R-PLUS, which is used by domestic and international farmers. Charah has now announced plans to expand its operations as demand grows.

In April 2013, Charah opened a US$14m plant at Mill Creek Generating Station in Louisville to produce SUL4R-PLUS after recognising a market for it in the agricultural industry. The sulphur content in local soil has fallen significantly in recent years as high-yield farming has pulled more of it out of the ground.

Charah gets gypsum powder from the Mill Creek facility and makes it into fertiliser pellets using several additives. It then sells the pellets to distributors. SUL4R-PLUS is now used in several states, including Texas, Wisconsin, Florida and other countries, including Canada and the Dominican Republic.

Due to its popularity, company officials have stated that they plan to expand operations with the introduction of a second production line at the Mill Creek production facility. In the future, it could also build production lines at other power plants it works with around the country.

Uzbekistan: Knauf has launched a consulting centre at the Samarkand State Architecture and Construction Institute, named after Mirzo Ulugbek, on 4 September 2014 in Samarkand, Samarqand Province. This is Knauf's second consulting centre in Uzbekistan. The first was opened in June 2008 under Tashkent State Architecture and Construction Institute, which has proven its efficiency in training skilled builders.

The centre will provide training to all interested parties on the use of modern construction materials. The training programmes are designed for various groups, including individuals who repair their houses on their own as well as professionals. Each trainee will receive technical documentation, manuals and other literature. Dmitry Deripalko, director general of Knauf Gips Bukhara, underlined that the centre will assist young people and builders to receive theoretical and practical skills.
Knauf purchased 30.8% of state assets in Bukharagips for US$1.55m and invested US$6.3m over a three-year period. Knauf currently holds 98.98% stake in the enterprise, while employees and other shareholders hold 1.02%. The enterprise specialises in the production of dry gypsum mixtures and was founded in 1934. Bukharagips owns a gypsum mine with 45Mt of reserves with 90-100% calcium content, a lime mine with 7.8Mt of reserves and several other mines. Knauf launched production of dry gypsum mixtures in 2009 at the 60,000t capacity Bukharagips plant.

Russia: According to the Statistics Service of the Krasnodar Region (South), in January - July 2014 the production of non-metallic building materials decreased by a factor of 1.6, production of plaster and ready-mix concrete fell by a factor of 1.5 and production of gypsum dropped by 26%. In contrast, the production of paving tiles of cement, concrete and artificial stone grew by 14.3%, production of blocks and other prefabricated un-reinforced products increased by 24.4% and production of technological lime rose by 60%.

Uzbekistan: JSC Uzstroymateriali's building materials exports made US$42.9m in the first six months of 2014, which is 15.5% more compared to the same period of 2013. Enterprises of the company have increased their production by 4.5% for the reporting period.

Cement production grew by 4.9%, gypsum by 10.7%, dry construction mixes by 32%, gypsum boards by 2.9% and ceramic tiles by 10.1%. The total amount of capital investments of the largest enterprises of Uzstroymateriali amounted to US$18.3m, a 371% year-on-year increase.

US: USG Corporation has reported its strongest quarterly net income since 2007. Second quarter 2014 net sales of US$948m were up by 3% from second quarter 2013 net sales of US$916m. USG's second quarter 2014 operating profit was US$98m compared to US$74m in the second quarter of 2013. Second quarter 2014 net income was US$57m. This compares to a net income of US$25m in the second quarter of 2013.

"I'm pleased to report our best quarterly results in seven years," said James S Metcalf, chairman, president, and CEO of USG. "Despite slower than expected acceleration in industry opportunity, most of our businesses and products improved their performance from a year ago and we also recorded our first full quarter of operations in our USG Boral joint venture."

The corporation's adjusted operating profit was US$93m in the second quarter of 2014, which includes adjusted equity method investment income of US$6m from USG Boral Building Products, compared to an adjusted operating profit of US$76m in the second quarter of 2013. Adjusted net income was US$48m in the second quarter of 2014 compared to an adjusted net income of US$26m in the second quarter of 2013. Adjusted net income in the second quarter of 2014 excluded, among other items, a US$12m gain on the sale of its New Jersey paper mill, which has been idled since 2009.

"We remain confident in the recovery, but challenges in the macro-economic environment still exist," said Metcalf. "However, we believe that the second half of the year will be better than the first half and we are well positioned to capitalise on the improving opportunity."

Thailand: Thai Gypsum Products, the manufacturer of Gyproc brand gypsum products in Thailand, has reaffirmed its positive outlook regarding market conditions in the second half of 2014 with its commitment to build a new warehouse / distribution centre in Surat Thani Province. Following its strategic plan to achieve 5% growth before the introduction of the ASEAN Economic Community (AEC) in 2015, Thai Gypsum Products continues to expand its national footprint following the opening of the 5th Gyproc Centre, which was launched recently in Phuket.

"Gyproc aims to become the market leader in gypsum production following the AEC integration," said Thongchai Kamolpattana, commercial director. "As Thailand is located centrally within the region, we believe that many foreign investors will be attracted to invest in the country, whether by development of properties they own or the expansion of their regional offices, both sectors requiring materials for construction."

Ethiopia: The Geological Survey of Ethiopia (GSE) has identified 20 new mineral deposits. Eighteen of the deposits contained gypsum, limestone, marble and potash. Nineteen of the deposits were found in Oromia Region. The 20th, a coal deposit, was found in Wolkite Town, Southern Nations, Nationalities and Peoples' Region.

Russia: Gypsum producer Volma has drawn a one-year loan of Euro4.30m from VTB bank. The company will finance its business operations with the funds. Volma has already secured Euro18.2m in loans at VTB.